The main idea of the project is to increase innovativeness of blue and green tourism companies, by integrating selected elements of the circular economy into their services, products and business models. The concept of CE assumes minimizing the environmental impact of products/services. It can be achieved by designing them in a way which enables to take maximum value from the product whilst in use, regenerate it during its life-cycle and to recover/reuse its materials at the end. By realising this Project, we intend to prepare SMEs acting in touristic sector in the South Baltic Region to take the opportunity offered by CE. Elements of CE implemented into business models of SMEs, can be drivers for green products and services in tourism. Resource efficiency, better waste management, eco-friendly mentality, product/service life-cycle management in a sustainable manner can increase competitiveness of SMEs, bring to them real savings and what is more important – improve their innovativeness and create new business opportunities. Our approach is in some way pioneering and innovative, as the concept of CE derives primarily from the industry sector and is mainly adopted by manufacturers and retail companies. Moreover, tourism companies in the South Baltic Area vary in skills, innovation capacity, and environmental consciousness. To reduce these gaps, we intend to deliver to tourism SMEs capacity building tools such as self-assessment tool (MO2), model of the cross-border training programme (MO3), and advisory services (MO4). These correspond to programme output indicators. Within the training we would like to use some innovative methodologies – business model canvas and design thinking. This method of work is catalyst of changes, because encourage capacity and extraction of knowledge in company to design non - common solutions and innovative products and services.